Business

US stocks fall following mixed retail results

US stocks moved into negative territory in early trade today following uneven earnings and sales reports from leading retailers.

About 35 minutes into trade, the Dow Jones Industrial Average fell 42.48 (0.26%) to 16,508.49.

The broad-based S&P 500 lost 6.68 (0.36%) at 1,868.95, while the tech-rich Nasdaq Composite Index shed 8.28 (0.20%) to 4,043.21.

Gap reported that April comparable sales jumped nine% from the year ago level, but Ralph Lauren said profit margins in its next fiscal year will drop as it steps up investment in advertising and market.

Gap shares jumped 4.6%, while Ralph Lauren fell 5.1%.

Publicity giants Omnicom and Publicis called off a US$35-billion (RM113 billion) merger that would have fashioned the world's largest advertising house amid disagreements over integrating the companies and filling key executive positions.

In New York, Omnicom was up 0.3% while in Paris, Publicis shares fell 0.4%.

Apple shares fell 0.8% amid reports it is close to announcing a US$3.2-billion acquisition of Beats Electronics, which makes headphones and has a popular music-streaming service.

Investment bank Goldman Sachs disclosed that regulators have questioned the company over its high-speed trading operations and its foreign-hiring practices. Shares dipped 0.7%.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.62% from 2.61% yesterday, while the 30-year increased to 3.45% from 3.43%. Bond prices and yields move inversely. – AFP, May 9, 2014.

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